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A explain the effect to the economy if there is a decrease

Assume that the economy is at full employment. Draw diagram.

a) Explain the effect to the economy if there is a decrease in investment spending. Draw diagram.

b) Explain how countercyclical fiscal policy will adjust the economy back to full employment. Draw diagram.

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Macroeconomics: A explain the effect to the economy if there is a decrease

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Macroeconomics: A explain the effect to the economy if there is a decrease

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